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Graham Awards


Supply drought caused by “many years” of anti-landlord reforms - claim

One of the country’s most prominent housing market indices says the current imbalance between supply and demand in the rental sector is the consequence of “many years of landlord disincentivisation.”

The Home index, produced monthly and including a summary of the rental market as well as sales, includes useful figures for those wanting a snapshot of the lettings landscape.

Its latest index, released over the weekend, says:Rents continue to rise overall. The mix-adjusted average annualised rise for the UK stands at 11.4 per cent. Supply remains tight in the face of overwhelm­ing demand. 


“This is undoubtedly the unintended consequence of many years of landlord disincentivisation through increased taxation and regulation. The levelling up agenda has, ironically, made it even more difficult for renters to get a foot on the property ladder while rising rents gobble up any spare cash they might have had.

“Meanwhile, the HMRC is clearly the main beneficiary, along with local coun­cils and their costly yet mandatory regis­tration schemes.”

In his commentary accompanying the snapshot, Home director Doug Shephard says: “Rents are already rising very quickly and therefore fuelling inflation, chiefly due to a lack of supply. 

“Raising the cost of borrowing for landlords will have the inevitable results of 1) raising rents even further as the costs are passed on to tenants and 2) disincentivising investment in the private rental sector thereby making a difficult undersupply situation much worse.”

Home highlights the largest rent rises over the past year - they are all in London.

Bexley, Kensington and Hillingdon have seen annual rises of 42, 33 and 30 per cent respectively.

You can see the full Home index here

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  • Peter  Roberts

    The Government and Councils know but don’t want to know that all there taxation changes and further costs implications are costing properties to the rental market.
    It’s becoming more and more clear that more and more PRS LLs are exiting the market due to Government and Councils.
    They make money from LLs in the short term but that will dry up very quickly now that the PRS LLs are selling up and getting out of the game.
    They just don’t have the mental capacity to realise that the PRS LLs have been propping up the rental market for them. But now this is very quickly reducing and anyone apart from Government and Councils can see that Council Offices will become full of Families that no longer have anywhere to live and they have nowhere to offer them.
    This leads to families being put into B&Bs and cheap hotels that Government and/or Councils will have to fund.
    This will happen very quickly and certainly within the next year or so.

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    We all know this is simply the beginning of the sell of, the RRB will be another nail, the EPC C yet another and the final blow will be a Labour government 💀💀

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    Back in 2015 when the election results were announced I was convinced good times were ahead for landlords. So much so I went out and bought another 2 HMOs.
    Shortly after that the attack on landlords began.
    Since then I have been scrabbling around trying to cope with all the new taxes that have been heaped on us.
    I bought another 3 properties in my personal name between 2016 and 2019. These were all much smaller. The 3% SDLT surcharge saw to that. Run down 2 and 3 beds that prior to HTB would have been the stuff FTBs with DIY skills would have bought. All had been languishing on the market for a prolonged period. One was for sale for so long it was repossessed.
    Then we set up a limited company and bought another two in 2020 and 2022. Again they were smaller properties FTBs didn't want. Both had been on the market for many, many months.

    Right up until last summer I was in buying mode.
    How things have changed in the last 12 months. Right now there isn't a cat's chance in hell of me buying anything. Even if I wanted to it would be impossible to find anything that stacked without a huge deposit. Even if I was willing to operate with no profit the extra SDLT and mortgage product fees would make it unattractive. Even buying as a limited company doesn't make the numbers work.

    It's even got to the point where we got an estate agent round to value one of the houses last week and are weighing up whether to try and sell it. It's a tricky decision. The CGT would be £90K. It rents out very easily, two of the tenants are leaving this summer so there will be big rent rises if we stick with it. It has sentimental attachment as my husband grew up in the house. However, we're almost certainly going to be in the 60% tax bracket this year due to Section 24 so selling it would help prevent that.



    I wouldn't sell just to avoid the 60% marginal tax robbery.

    Remember it's " only " levied on £25400 of income and then "drops down " to 45% - or 47% in Scotland, so you're actually allowed to keep more than half of your own money!

    If you don't need the cash for other things it's still better in property than almost anywhere else, especially if there's going to be a diminishing supply for an increasing demand, which is tradionally an ideal business model.

    I'm going nowhere until the nursing home beckons!

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    There are difficult choices for a lot of mortgaged Landlord's and with most of us, when the fixed rate comes to an end, could be facing mortgages of around 7% then the pain will really begin!
    When I started in this game I stressed tested myself to an 8% mortgage. However, Section 24 has shredded that. I've sold 2 already which has given me a massive cushion to fall back on.
    In these uncertain times and completely blind Government then there is going to be some further pain for tenants and Landlord's.
    Hopefully this will be short lived and sometime next year there will be light on the horizon. But, if legislation stays the same I cannot see this industry being a growth sector and when these large companies get to grip with this new legislation they will hit the eject button.
    Therefore to the odd 'doomster' on this forum, you could well be right but I think it will be in at least 3-5 years time. Just then maybe first time buyers can buy one of the newish rabbit hutches they call homes at a very good price!!


    when these large companies get to grip with this new legislation they will hit the eject button.

    Doubt it, the Gov of the day will exempt them from ‘trauma’ in return for a select group of MP’s getting cushy directorships. Corporate business in corrupt partnership with bent MPs . BTR is tomorrows corporate domination of the PRS, tomorrows high rent low quality hutch housing for the masses and the future king of slum landlords.

  • Kevin

    I don’t believe that incompetence can be blamed for all policy. I maintain that in order to attract big business to the sector they had to first get rid of the small guy. Build to rent will eventually replace those leaving the sector and the public will be where they want them, in stacked energy efficiency rabbit hutches, with no space to park a car.

    Peter Why Do I Bother

    Kevin, they will become the new slums, Scruffy Fkrs that cannot even be bothered to have a wash will be leaving bags of rubbish in the communal halls and no doubt terrorising other tenants.

    Race to the bottom with the current direction of societal behaviour


    You have more faith than me Kevin, I simply fear that the Government are just reckless. They have people making decisions that simply do not KNOW and that is concerning.
    Reminds me of the baby officers that were given jobs of looking after buildings in the RAF, the tradesmen had them for Breakfast, Lunch and Dinner. By the time they got it together they were posted off to another role. Much better when they had the correct departments, whom knew what they were doing, running these projects.
    We can just see how modern Britain is going, most modern Politicians are worth tuppence!


    BTR is surely going to be a more expensive option than private LLs. Many of us keep our costs down by doing our own repairs, searching out good deals etc. The BTR companies will just pay the going rate (or way above) for everything, and need to make a profit at the end. I don't believe this is good news for tenants.


    I agree with Tricia.

    The purpose built student ghettos pushed up market rents for the more traditional properties nearer amenities and universities.

    The same will happen in the btr shoe boxes in the sky and those landlords who stay the course will win in the long term.

    Incidentally I see the guy in charge of the John Lewis property project has resigned- wonder why?

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    We have to stop thinking that the people making decisions that are currently crippling us are idiots. As the above report suggests the Main Beneficiaries of the Policies are The Government and the Councils.
    When Osborne bought in Section 24. It was only aimed at the Smaller Private Landlord. They made sure it did not effect the Housing Associations , Or Corporates, and Probably how Politicians own their properties. They new the consequences of the Tax Because it was tried in Ireland first.
    Selective license was supposed to be Selective . The safe Guard was supposed to Permission was required from Government to exceed 10 % . However there are no safe Guards Councils are claiming their areas need wholesale Licences so they can rake the Wonga in . And Goves department appear to be rubber stamping the applications. So Happy Days except for Landlords and Tenants.

    The Big Problem we have is that we are easy Targets , With little or no proper representation.


    I can agree with us being easy targets, yes Councils are exploiting licensing.
    No politicians are not idiots, they are arrogant, self serving, highly opinionated and some are easily corrupted. Worst of all they think they know better!!

    Peter Why Do I Bother

    Two points Stephen,

    1. They are idiots for forcing this issue and causing drama where it didn't need to. Social problems are their issues to control and monitor, with this they have lost control because of the homelessness crisis they are about to start.

    2. Easy targets 100% correct

  • John  Adams

    Prince William is going to build lots of social housing so that should fix it, King Charles is giving up his council house on the Mall, so wheres the problem?

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    Not alone parking many won’t use bikes either.
    At Sainsburys, Alperton the Block of Flat Grand Union Heights Adjacent and accessed from their car park, they 4 interconnected secure compounds with 2m high railings and 4 lockable gates with 65 cycle U bars to accommodate 130 bikes but how many bikes have I seen there, only one and that was 3 years ago. The Flats were for key workers priority, they bought them at a reasonable price and guess what they didn’t live there but let them out.

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    Jo I think Robert is right but if the chips are down, can you sell your own residence that won’t attract C/gains to reduce your debts and move to one of your other ones, it may also help you in the future if you could repeat the process, just thinking to myself not advice.
    I understand the 60% is between £100k & £125k as your personal allowance is removed and taxed but the new 45% rate (increased from 40%) between the £125 & £150k is no joke either, what galls me altogether is that this is levied on my rubbish old age pension, some part of everyone pension should be tax free having paid tax all your life otherwise what’s the use.


    Michael - my husband certainly wouldn't entertain selling his much loved double garage (man cave). It took us about 5 years to find a house with his dream garage. The house also happens to be perfect for old age should we require things like stair lifts or mobility scooters. So however attractive the CGT situation that garage is non negotiable.


    When I did things like reducing the height of hedges so I don't need a ladder to trim them, my grown up kids told me I was already 15 years too late if it was part of planning for my old age!


    @Jo. Sell your most recent purchases maybe? Less gross profit as such but also significantly less CGT? My original house (big HMO near the Uni) makes me my best return and mortgage now paid off. It's a keeper until I'm carried out in a box. The more recent ones however can go if the right buyers can be found

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    Jo, gosh fair play to you, I know you can’t beat having space, he is some man of course I have some Tenants long distance lorry drivers they are out of the house at 2.00 o’clock am, still don’t go putting the downers on it, planning for future lifts and mobility scooters that’s morbid I’am still going up ladders.
    Probably better not to get too sentimental about a property it will bite you if the price is right its a good antidote.

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    Robert the hedge I have won’t be held in check for very long it’s a well established one that I have reduced so many times over the decades but now about 2.4m again although I have taken the chainsaw to it before now.
    I have taken it down to 1.5m Which is as low as I could get because of the wrought iron railing’s imbedded with-in.
    However each cut about 4 times a year it gains a bit each time. It serves a purpose really as a sound barrier for the house in this busy area which is in a great location near a Railway Station & tube Station + all the local Shops you would want between 50 & 300m away, so it will be kept. Anyway that’s only a pair of steps I used be on precast & steel frame erection.



    My son has a hedge that's now around 4 metres high.

    He was quoted £800 to have it trimmed, which would need to be done twice a year, so he bought a big 4 metre tripod ladder for around £400 and did it himself.

    The guy phoned back to follow up on his quote ( unusual nowadays!) and said his quote included over £100 to hire the same ladder as he couldn't afford to buy it himself. God knows how much he pays every year in hire charges but he is in a rented house with a fancy 4×4 pick up on lease. Different outlook and priorities from most on here!


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